Question
Peter Harvey has bought 1,000 units in each of the following funds sometime earlier this year. Each of the funds did well during the year
Peter Harvey has bought 1,000 units in each of the following funds sometime earlier this year. Each of the funds did well during the year and posted the following NAVPUs.
Dec 14, 2014 No of units Price Value
IFSE Bond Fund 1,000 $11.50 $11,500
IFSE Balanced Fund 1,000 $18.75. $18,750
IFSE Global Growth Fund 1,000 $27.69 $27,690
Total $57,940
On December 15, 2014, each of the funds declared the following distributions:
Dec 15, 2014 Distribution per unit
IFSE Bond Fund $1
IFSE Balanced Fund $2
IFSE Global Growth Fund $3
Peter decided to re-invest the distributions of the Bond Fund and the Balanced Fund but decided to take distribution in cash on his Global Growth Fund.
1) How many units did Peter hold of each of the funds as at December 16th? (round off to 2 decimals)
2) What is Peters total portfolio value as at year-end?
3) Would there be a difference in the tax payable if Peter would have decided to reinvest all of the distributions rather than take cash?
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